Lexington Technology Group Reaches Settlement with a Defendant in Bascom Patent Case
Lexington Technology Group (LTG), an intellectual property management
firm that has entered into a definitive agreement to merge with Document
Security Systems, Inc. (NYSE
MKT: DSS), announced today that its wholly owned subsidiary, Bascom
Research, reached a settlement with a defendant in its ongoing
litigation in the Northern District of California.
As a result of the current settlement LTG will realize revenue beginning
in 2Q 2013. Terms of the patent license are confidential as stipulated
in the agreement, but include an effective royalty rate of approximately
4% for use of the four Bascom patents currently in litigation.
Bascom Research is a software development company focused on building
solutions for the management of complex and distributed data in
healthcare and other fields. The company owns patents that are
instrumental to social networking and aspects of enterprise networking.
In 2012, Bascom Research brought claims for patent infringement against
five defendants, including Facebook, Inc. and LinkedIn
Corp. This case is still pending in the Northern District of
California and a Markman hearing for the case is scheduled to be heard
on October 2nd, 2013. A team of senior licensing experts from
IPNav, a leading patent licensing and monetization firm with more than
$600 million generated, is leading the licensing efforts and strategy on
the current case.
“This settlement is another important milestone for Lexington Technology
Group,” said Peter Hardigan, Chief Operating Officer of LTG. “Our
management has a track record of licensing and settlement, but this is
our first success with Lexington and the first demonstration of the
potential value of the Bascom Research patents. We look forward to
future successes with Bascom and our other investments.”
About Lexington Technology Group
Lexington Technology Group is an intellectual property management firm
that invests business experience, legal expertise and capital to
monetize pioneering inventions. LTG’s goal is to identify and capitalize
on opportunities for return, while rewarding highly qualified
innovators. The firm typically engages with companies that have
identified important innovations but that may lack the experience,
relationships or capital to succeed on their own, and have not been
fairly rewarded in the marketplace. LTG’s initiatives contribute to an
intellectual property market that enables innovators to benefit from
their discoveries and investors to profit from prudent risk. LTG’s
management team is comprised of experienced patent managers and
strategists that have collectively generated over $1 billion licenses,
settlements and damages awards to date. www.lex-tg.com
Important Additional Information Will Be Filed with the SEC
This communication does not constitute an offer to sell or the
solicitation of an offer to buy any securities of DSS, or Lexington or
the solicitation of any vote or approval. In connection with the
proposed transaction, DSS has filed with the SEC a Registration
Statement on Form S-4 containing a preliminary proxy
statement/prospectus. The preliminary proxy statement/prospectus
contains important information about DSS, Merger Sub, Lexington, the
transaction contemplated by the Merger Agreement and related matters.
DSS will mail or otherwise deliver the proxy statement/prospectus to its
stockholders once it is final. Prospective investors and security
holders of DSS and Lexington are urged to read carefully the proxy
statement/prospectus relating to the Merger (including any amendments or
supplements thereto) in its entirety when it is available, because it
will contain important information about the proposed transaction.
Prospective investors and security holders of DSS will be able to obtain
free copies of the proxy statement/prospectus for the proposed Merger
(when it is available) and other documents filed with the SEC by DSS
through the website maintained by the SEC at www.sec.gov. In addition,
Prospective investors and security holders of DSS and Lexington will be
able to obtain free copies of the proxy statement/prospectus for the
proposed Merger (when it is available) by contacting Document Security
Systems, Inc., Attn.: Philip Jones, Chief Financial Officer, at First
Federal Plaza, 28 East Main Street, Suite 1525, Rochester, New York
14614, or by e-mail at ir@dsssecure.com. Prospective investors and
security holders of Lexington will also be able to obtain free copies of
the proxy statement/prospectus for the Merger (when it is available) by
contacting Lexington Technology Group, Inc., Attn.: Investor Relations,
1616Anderson Road, McLean, VA, 22101, or by e-mail at info@lex-tg.com.
DSS and Lexington, and their respective directors and certain of their
executive officers, may be deemed to be participants in the solicitation
of proxies in respect of the transactions contemplated by the agreement
between DSS, Merger Sub and Lexington. Information regarding DSS’s
directors and executive officers is contained in DSS’s Definitive Proxy
Statement on Schedule 14A prepared in connection with its 2012 Annual
Meeting of Stockholders, which was filed with the SEC on April 18, 2012.
Information regarding Lexington’s directors and officers and a more
complete description of the interests of DSS’s directors and officers in
the proposed transaction will be available in the final proxy
statement/prospectus that will be filed by DSS with the SEC in
connection with the proposed transaction.
Cautionary Note Regarding Forward-Looking Statements
Statements in this press release regarding the proposed transaction
between DSS and Lexington Technology Group; the expected timetable for
completing the transaction; the potential value created by the proposed
Merger for DSS’s and Lexington Technology Group’s stockholders; the
potential of the combined companies’ technology platform; our respective
or combined ability to raise capital to fund our combined operations and
business plan; the continued listing of DSS's or the combined company’s
securities on the NYSE MKT; market acceptance of DSS products and
services; our collective ability to maintain or protect our intellectual
property rights through litigation or otherwise; Lexington Technology
Group’s limited operating history, competition from other industry
competitors with greater market presence and financial resources than
those of DSS’s; our ability to license and monetize the patents owned by
Lexington Technology Group; potential new legislation or regulation
related to enforcing patents; the complexity and costly nature of
acquiring patent or other intellectual property assets; the combined
company’s management and board of directors; and any other statements
about DSS’ or Lexington Technology Group’s management teams’ future
expectations, beliefs, goals, plans or prospects constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Any statements that are not statements of
historical fact (including statements containing the words "believes,"
"plans," "could," "anticipates," "expects," "estimates," "plans,"
"should," "target," "will," "would" and similar expressions) should also
be considered to be forward-looking statements. There are a number of
important factors that could cause actual results or events to differ
materially from those indicated by such forward-looking statements,
including: the risk that DSS and Lexington Technology Group may not be
able to complete the proposed transaction; the inability to realize the
potential value created by the proposed Merger for DSS’s and Lexington
Technology Group’s stockholders; our respective or combined inability to
raise capital to fund our combined operations and business plan; DSS’s
or the combined company’s inability to maintain the listing of our
securities on the NYSE MKT; the potential lack of market acceptance of
DSS’s products and services; our collective inability to protect our
intellectual property rights through litigation or otherwise;
competition from other industry competitors with greater market presence
and financial resources than those of DSS’s; our inability to license
and monetize the patents owned by Lexington Technology Group; and other
risks and uncertainties more fully described in DSS’s Annual Report on
Form 10-K for the year ended December 31, 2012 as filed with the SEC, as
well as the other filings that DSS makes with the SEC. Investors and
stockholders are also urged to read the risk factors set forth in the
proxy statement/prospectus carefully when they are available.
